Big Tech’s billions: What it really means for Malaysia

​Dan Lain-Lain (Malay for “and others”) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene, but with a heavy mix of current affairs, policy and politics. Click here to read past articles.

Southeast Asia is buzzing with tech investment activity, and Malaysia is stealing the spotlight.

Tech in Asia’s data shows that Malaysia is in the pole position, gobbling up most of the billions promised over the past few months.

Take that, Singapore, Vietnam, and Indonesia! I kid, of course. As always, I’ll lay out the good, the uncertain, and the bad.

Image credit: Made by Tech in Asia using Midjourney

See also: Charting big tech’s $70b spending spree in Southeast Asia

Malaysia: data center and tech deal hub?

Given all the news about investments flowing into the country, Malaysia is already an M&A and investment target for both tech and non-tech investments. I’ll focus on the former.

First, let’s break down some of Big Tech’s recent pledges to Malaysia:

• Alphabet Inc.: US$2 billion to develop the country’s first data center and cloud facility.
• Microsoft Corporation: US$2.2 billion to develop AI and cloud infrastructure, including building a data center and upskilling Malaysians in AI.
• Nvidia Corporation: US$4.3 billion to develop AI infrastructure together with Malaysian conglomerate YTL.
• Amazon Web Services: US$6 billion for cloud computing infrastructure.
• Infineon: US$5.4 billion to expand its power chip plant in the Kulim Hi-Tech Park.
• Vantage Data Centers: US$3 billion to build a second data center in Cyberjaya.
• Geely: US$10 billion for a so-called automotive high-tech valley in Tanjung Malim, a town outside Kuala Lumpur.
• ByteDance: US$2.1 billion for an AI hub in Malaysia.

Most of the deals are centered around data centers. In addition to the companies on the list, GDS Holdings sold its stake in data-center businesses outside China, including those in Malaysia, to alternative asset managers Hillhouse Investment and Boyu Capital for US$587 million.

Last year, DigitalBridge Group Inc. also bought a controlling stake in AIMS Group from Bursa Malaysia-listed broadband provider Time dotCom.

Nvidia CEO Jensen Huang (left) discussing investments with Malaysian Prime Minister Anwar Ibrahim during a December 8, 2023, visit / Photo credit: Anwar Ibrahim’s press team

The state of Johor is grabbing most of the headlines due to its close proximity to Singapore, as well as ample land and energy resources, which are key components needed for data centers.

The beneficiaries

The economic benefit

Promises, promises

Commitment

Not all AI and data centers